Premier Inc (PINC)
Return on assets (ROA)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 20,269 | 62,510 | -4,753 | 145,567 | 119,544 | 80,331 | 167,327 | 177,071 | 175,026 | 183,466 | 175,080 | 186,579 | 265,867 | 285,513 | 295,419 | 263,843 | 310,679 | 287,428 | 277,266 | 269,782 |
| Total assets | US$ in thousands | 3,119,170 | 3,071,790 | 3,142,380 | 3,313,600 | 3,428,600 | 3,363,730 | 3,832,530 | 3,849,570 | 3,371,490 | 3,512,520 | 3,539,390 | 3,419,740 | 3,357,130 | 3,515,460 | 3,451,460 | 3,566,920 | 3,522,900 | 3,681,960 | 3,510,800 | 3,441,580 |
| ROA | 0.65% | 2.03% | -0.15% | 4.39% | 3.49% | 2.39% | 4.37% | 4.60% | 5.19% | 5.22% | 4.95% | 5.46% | 7.92% | 8.12% | 8.56% | 7.40% | 8.82% | 7.81% | 7.90% | 7.84% |
June 30, 2025 calculation
ROA = Net income (ttm) ÷ Total assets
= $20,269K ÷ $3,119,170K
= 0.65%
The analysis of Premier Inc.'s Return on Assets (ROA) over the period from September 30, 2020, to June 30, 2025, reveals notable trends and fluctuations. Initially, the ROA demonstrated relatively stable performance, with values ranging from approximately 7.40% to 8.82%. Specifically, the highest ROA during this period was 8.82% in June 2021, indicating a period of efficient asset utilization generating above-average profits relative to total assets.
Subsequently, a decline in ROA became evident starting quarter-over-quarter. In particular, from September 30, 2021, onward, the ROA exhibited a decreasing trend, hitting a low point of approximately 2.39% in March 2024. This decline reflects decreasing profitability relative to the company’s asset base, possibly due to increased operating costs, reduced margins, or challenges affecting asset productivity.
In late 2024 and into the first half of 2025, the ROA entered a negative territory, reaching -0.15% on December 31, 2024, suggesting that the company’s net income was insufficient to cover its total assets, thus indicating potential operational or financial difficulties. Following this, a partial recovery was observed with a ROA of 2.03% as of March 31, 2025, and a slight decline to 0.65% by June 30, 2025. Although this indicates some rebound in asset utilization efficiency, the ROA remains relatively low compared to historical levels observed pre-2022.
Overall, the trend indicates a significant deterioration in asset profitability over the analyzed period, shifting from stable and relatively high figures above 7% to negative territory, historically considered a warning sign of operational or financial distress. This pattern underscores the importance of assessing underlying causes such as changes in revenue, operating costs, or asset management strategies which have contributed to the downward trajectory in ROA.